One nice primer I have found regarding the Fannie Mae Freddie Mac
operations
http://www.cbo.gov/showdoc.cfm?index=13sequence=2
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
It is actually more complicated since the US Federal Reserve directly influences the cost of bank funds that are resold to consumers directly through the Federal Reserve discount rate (currently 1%) . Also, the regulation (or lack thereof) of the sale of mortgage-backed securities on the
It is actually more complicated since the US Federal Reserve directly influences the cost of bank funds that are resold to consumers directly through the Federal Reserve discount rate (currently 1%) . Also, the regulation (or lack thereof) of the sale of mortgage-backed securities on the secondary
Robert Manning wrote:
snip
The investment risk of peaking US housing market prices (buttressed by
historically low debt service levels) is globalized through the sale
of these mortgage-backed securities in international markets such as
London and Japan. Hence, low interest rates fuel higher
Gordon Brown and the British government have been looking enviably at
the US mortgage market where long term fixed mortgages play a part in
a mixed economy.
Mortages in the UK are almost all short term. Arguably fluctuations in
interest rates for national and international economic reasons, have
The chief govt support in the US for mortgages (that I know of) is that
interest paid is tax deductible.
joanna
Chris Burford wrote:
Gordon Brown and the British government have been looking enviably at
the US mortgage market where long term fixed mortgages play a part in
a mixed economy.
